Bank Indonesia will reduce the minimum limit of fund transfer through the instrument of “Real Time Gross Settlement” (RTGS) to Rp100 million from Rp500 million at present. The new limit would be effective as from July 1, a Central Banks Executive Director Bramudija Hadinoto said on Monday, June 7, 2016.
The reason for the cut is that the Central Bank wants transfer of fund larger than Rp100 million is allowed for certain appropriation as fund larger than Rp100 million is already put in the category of non retail fund. RTGS is an electronic transfer system at real time. The central bank has two systems of fund transfer — RTGS and clearing systems. RTGS transfer is done at once and clearing take a process of two hours .
The cut in the minimum limit of fund transfer through RTGS, is expected to result in an increase in frequency of transfers to 55,000 times from normally 39,000 times a day from and clearing transactions are expected to decline in frequency from 470,000 times to 450,000 times day.
